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Central TorontoIntegrated Regional Resource PlanDiscussion WorkbookMeeting electricity needs for the next 25 years

®A registered trademark of Toronto Hydro Corporation used under licence. “Toronto Hydro” means Toronto Hydro-Electric System Limited.

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The purpose of the Integrated Regional Resource Plan (IRRP) is to ensure that the electricity service requirements of the community are served by an appropriate combination of demand and supply options, which reflect the priorities of the community. This study forecasts the expected growth in electricity demand and investigates the costs and benefits of conservation, distributed generation, and transmission and distribution options in meeting the future electricity needs of customers in the central Toronto area for the next 25 years (up to 2037). The outcome is an integrated plan with a long-term perspective, which recommends a balance of options that account for costs, the contribution to reliable electricity service, and mitigation of environmental impacts.

The workbook seeks your input on some basic questions planners must consider when developing an integrated electricity plan. You don’t have to be an expert to participate. The workbook provides key background information. Technical terms have been hyperlinked so if you see a word you are unsure of, you can click on the word and see the definition in the glossary in the back. This includes some words that we use every day but have a very specific meaning in electricity planning.

The workbook is broken down into the following sections:

What is this Consultation About?

Where Does Electricity Come From?

An Overview of the Central Toronto Electricity System Today

Planning to Meet Customer ExpectationsReliability Experience and Expectations Reliability and Economic DevelopmentSecurity

Options for Meeting Central Toronto DemandsConservation and Demand ManagementTransmission and Distribution Distributed GenerationComparing Alternatives Generation

Technical Glossary

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What is this Consultation About?The IRRP looks ahead 25 years at the long-term trends for electricity demand in central Toronto and the different ways that demand can be met. An IRRP project team is working together to jointly develop the plan. The project team is comprised of members from four organizations: •The Ontario Power Authority (OPA) — The organization is responsible for long-term provincial electricity system planning, developing province-wide conservation programs and contracting generation.

•The Independent Electricity System Operator (IESO) — The organization operates Ontario’s power system and electricity market, forecasts the demand and supply of electricity for the near term, and oversees the balance between the provincial demand and supply of electricity in real time.

•Hydro One Networks Inc. (Hydro One) — The provincially-owned electricity transmission company is responsible for operating and maintaining high voltage transmission lines and stations that supply Toronto.

•Toronto Hydro-Electric System Limited (Toronto Hydro) — The city-owned local distribution company distributes electricity to homes and businesses in the City of Toronto and engages in conservation and demand management activities. Toronto Hydro’s bill includes the utility’s distribution charge, and also the costs for generating, transmitting and maintaining the provincial grid.

This IRRP process is coordinated by the OPA. The IESO is a participant of this process as the power system operator, Hydro One as the provider of transmission facilities and Toronto Hydro as the local distribution company for the central Toronto area.

The IRRP focuses on regional demand and supply issues. Ontario has a Long-Term Energy Plan that provides an overall framework for electricity including the role of conservation and Ontario’s electricity supply mix. The purpose of the IRRP is to meet regional electricity needs.

This plan deals only with central Toronto. The electricity system serving central Toronto was developed separately from the system serving the rest of Toronto. As detailed later in the workbook, the transmission grid serving this area operates on a different voltage than the rest of Toronto and is managed independently from the rest of the city. Meeting the needs of central Toronto is a significant task. The electricity demand for just this part of Toronto is larger than some provinces in Canada.

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FIGURE 1 — STUDY AREA MAP

Approximate study area boundary

• Studyarealimitedtotheareaservedbythe115kVtransmissionand13.8kV distributionnetworksandtwomaintransmissionsupplypathsservingthatsystem.

• Areaincludesthecentralbusinessdistrict,highdensityandcriticalloads.

• Peakdemandfortheareais2,000MW,andrepresentsabout40% ofthetotalTorontoHydropeakdemand.

• SupplytotheremainderofMetroTorontohasbeenreviewedinaNeedsScreening aspartoftheRegionalPlanningProcessforthatarea.“Localized”wires-onlysolutions areneededtoaddressonelineissueandonestationissue.

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This plan exists to serve your needs. This document is intended to provide you with key background information and to ask for your input on three key topics:

•Whatareyourexpectationsaroundelectricity service, and what number and duration of power outages can you tolerate?

•Wouldyoubewillingtopaymoreinorderto reduce the number or duration of power outages, and if so, how much more?

•Whatareyourpreferenceswhenyouconsider the options available to meet central Toronto’s needs?

You don’t have to be an expert to participate in this consultation. This workbook provides the basic information you need to understand the electricity system and the challenges it faces.

The IRRP does not make immediate decisions concerning major new infrastructure. Specific decisions about major new electricity infrastructure have their own approval processes. However, the plan will identify needs and provide recommendations to address those needs.

This is an ongoing process. The plan will be reviewed every three to five years, depending on how much the assumptions of the plan have changed.

Before you proceed to the next section, please let us know if you are responding to this workbook as . . .

___ A residential customer (single-family dwelling)

___ A multi-residential customer (condo or apartment)

___ A commercial customer

___ An institutional customer, or

___ An industrial customer

For each question, please either check the box that best represents your view or write your response in the space provided.

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Where Does Electricity Come From?This chapter explains how electricity is generated, transmitted and distributed to the City of Toronto. If you are already familiar with the electricity system in Ontario, please feel free to skip ahead.

There are four main components to all electricity systems: generation, transmission, distribution and consumers. In Ontario, approximately 55 per cent of electricity is generated by Ontario Power Generation. This provincially-owned corporation has generating stations across Ontario that produce electricity from hydro-electric, nuclear and fossil fuel sources. The balance of generation is provided by independent power producers.

Once electricity is generated, it must be delivered instantaneously to customers in urban and rural areas. This happens by way of high voltage transmission lines that serve as highways for electricity. The province has more than 30,000 kilometres of transmission lines, owned mostly by Hydro One.

Before you can use it, the high-voltage electricity must be converted to a lower voltage that can be delivered to customers. This happens at transformer stations, which use transformers to “step down” or reduce the voltage. Increasingly in Ontario, small distributed and renewable generation resources are producing electricity closer to the customers that use it, reducing the reliance on transmission systems to transport power, often over long distances.

Local distribution companies, (LDCs), like Toronto Hydro, take electricity from transformer stations and bring it to the homes and businesses in their area. Toronto Hydro is responsible for the last step of the journey: delivering the electricity to its customers in Toronto.

Finally electricity consumers are an integral part of the power system. The efficiency of the equipment used by electricity consumers and when they use that equipment is a key consideration in the operation and planning of the power system. The incorporation of new technologies such as smart meters and smart grid control systems is helping to enable electricity consumers to become part of the solution to manage system challenges in the future.

BUSINESSES

RESIDENTIAL HOMES

TRANSFORMERSTATION

DISTRIBUTION LINES

MUNICIPALSTATION

FIGURE 2 — ONTARIO ELECTRICITY SYSTEM

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Figure 3

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Central Toronto ‐ Inset

Supply from the East

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Load Transfer Capability

Portlands 550 MWSupply from the West

An Overview of the Central Toronto Electricity System Today The electrical system serving central Toronto has evolved since Toronto Hydro’s founding in 1911 to meet growing demand and adapt to changing technology and standards. Toronto originally had significant local generation capacity (the 1200 MW coal/gas Hearn station) which was shut down thirty years ago. Today, Toronto relies on transmission lines to bring electricity into the city. The major generation capacity within central Toronto is the 550 MW gas-fired Portlands Energy Centre which represents about 25 per cent of the central Toronto peak demand.

FIGURE 3 — STUDY AREA WITH INSET MAP

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Toronto is supplied with electricity from its transmission service provider, Hydro One, at two voltages: 230 kV in the areas surrounding central Toronto and 115 kV in central Toronto. The 230 kV is a newer, high capacity system that supplies customers as well as connects portions of the larger network, including generating stations, together. Power is delivered by two main 230 kV transmission paths to two transmission stations, Leaside and Manby, which “step down” or reduce the voltage from 230 kV to 115 kV. The central Toronto transmission system operates at 115 kV and is the only network within the Greater Toronto Area that connects stations at this voltage level. The 115 kV transmission system supplies about 2,000 MW of summer peak demand in central Toronto and is near capacity at certain key load stations and transmission lines.

The area being supplied by the 115 kV transmission systems from the Leaside and Manby Stations are referred to as the Leaside Sector and the Manby Sector (refer to figure 3), and are operated separately. However, there are switching facilities in central Toronto that allow electricity to be transferred back and forth between the two sectors, which provide back-up for much of the 115 kV system. The 115 kV transmission system then supplies load stations which step down voltages further to the distribution system in order to supply central Toronto customers.

The Leaside and Manby Stations are also unique in that in addition to being transmission stations, they are also load stations — they step down to both 115 kV and distribution level voltages. The Leaside Station is located in East York and the Manby Station is located in south Etobicoke. Figure 3 shows the 230 kV network in Toronto and the supply paths to the Leaside and Manby Stations.

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Is the electricity system serving central Toronto large enough to meet the foreseeable demand?

In the IRRP process, electricity demand forecasts are estimated by Toronto Hydro based on the best available local information and plans for municipal growth and economic development.

These demand estimates include: •Populationandjobsprojections•Buildingscurrentlyplannedor under construction•Newcommunitydevelopments or redevelopments•Futureelectrificationoftransportation•ConservationPrograms

The IRRP project team has run a wide range of demand forecasts. However, even with an aggressive demand forecast, the Leaside Sector is not expected to exceed capacity for about 15 years. The Manby Sector is much more limiting and is at risk of exceeding capacity within the next five years.

FIGURE 4 — GROWTH AREA MAP

Planning to Meet Customer Expectations

Demand and Capacity

When electricity planners look to the future, they look at four key questions:1. Peak Demand — How much electricity do we expect customers in central Toronto will consume in the future?2. Capacity — How much electricity can the system supply to central Toronto when everything is working well?3. Reliability — How well will the system operate in practice when everyday things go wrong?4. Security — How well will the system operate when major events occur such as major storms or disasters?

Growthareaswhichrequirecapital/reliefthrough:• Transmissionsolutions •Distributionsolutions• ConservationandDemandManagementsolutions •DistributedGenerationsolutions

There are also more local capacity issues that need to be addressed. The location of demand growth within the area is important as communities do not evolve uniformly.

As figure 4 indicates, there are areas where demand is creating local capacity issues. The downtown capacity shortfall will need to be addressed in the next five to 10 years, but the western part of central Toronto has reached the point where immediate action is required. Four load stations in this area — Horner, Manby, Runnymede and Fairbank — are all reaching capacity.

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When electricity planners look to the future, they look at four key questions:1. Peak Demand — How much electricity do we expect customers in central Toronto will consume in the future?2. Capacity — How much electricity can the system supply to central Toronto when everything is working well?3. Reliability — How well will the system operate in practice when everyday things go wrong?4. Security — How well will the system operate when major events occur such as major storms or disasters?

If central Toronto’s electricity system is big enough to meet demand in theory, how well does it perform in practice?

There are two key measures of reliability of the distribution system: frequency and duration of customer interruptions. Simply put, how often do the lights go out, and how long do they stay out?

ElectricitysystemoperatorsacrossNorthAmericahave worked together to establish standards for system reliability and security. The central Toronto system is built to this industry standard and performs well within the standards.

Reliability

Frequency Statistics(Interruptions per customer)

Duration Statistics(Hours per customer)

FIGURE 5 — CENTRAL TORONTO RELIABILITY

Averagenumberofoutagespercustomerexcluding majorevents.1

1Includesallcausesexceptformajorevents,suchasseverefloodingoricestorms,forexample,bothtransmissionanddistributionrelated(majoreventsarediscussedinthesectiontitledsecurity).Thesestatisticsdonotincludemomentaryinterruptionsorpowerqualityissues.

Averagenumberofoutagespercustomerexcluding majorevents.1

Figure 5 — Frequency Statistics show that the number of outages experienced by customers in the central Toronto area has actually declined in recent years dropping from about one outage a year for one in three customers to one outage a year for one in five customers.

Figure 5 — Duration Statistics show that the length (hours) of the outages has varied over the same time but with no consistent pattern. In fact, the average length of time without power for central Toronto customers was about 12 minutes in 2006 and again, 11 minutes in 2013.

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RELIABILITY EXPERIENCE AND EXPECTATION DISCUSSION QUESTIONS

Outside of Major Events (Storms)For each question, please either check the box for the options that best represents your view or write your response in the space provided.

1. Do you feel the current average number of electricity outages in the central Toronto electricity system is acceptable or not acceptable? ___ Very acceptable ___ Somewhat acceptable ___Notveryacceptable ___Notacceptableatall

2. Do you feel the average length of an outage in the central Toronto electricity system is acceptable or not acceptable?

___ Very acceptable ___ Somewhat acceptable ___Notveryacceptable ___Notacceptableatall

3. How many outages have you experienced over the past 12 months?

________

4. (IF Question 3 > 1) How long was the power out during your most recent outage? Please describe in hours (e.g. 15 minutes = .25 hours, 2 days = 48 hours)

________

5. (IF 1 OR MORE OUTAGE) Residential Customers How did the power outage affect you personally? ___________________________________________________________________ ___________________________________________________________________ Commercial Customers How did the power outage affect your business? ___________________________________________________________________ ___________________________________________________________________

6. (IF 1 OR MORE OUTAGE) Can you estimate the dollar value of any expenses you incurred as a result of the power outage?

$________

7. Is there a certain length of time at which the costs and consequences of an outage become more serious for you? ___No Yes (Please describe)__________________________________________________ ___________________________________________________________________ ___________________________________________________________________

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RELIABILITY AND ECONOMIC DEVELOPMENT DISCUSSION QUESTIONS For each question, please either check the box for the options that best represents your view or write your response in the space provided.

8. How important is it that the central Toronto electricity system be reliable beyond the minimum standard? ___ Extremelyimportant ___ Notveryimportant ___Veryimportant ___ Notimportantatall ___ Somewhat important ___ Don’t know 9. Thinking of your total bill, how much more would you be willing to pay for the central Toronto electricity system to perform better?

______ Per cent

Recently crowned the fourth largest city by populationinNorthAmericaandcontinuedleader in high rise development, Toronto is a city under construction:

•Therearemoreskyscrapersunderconstruction inthedowntownareathaninNewYorkCity, Chicago and Mexico City•Therearemorethan75potentialdistribution plant relocation projects to facilitate the city’s new developments and transit plans•TherateofToronto’sgrowthisputting immediate and longer-term pressures on the existing grid

Reliability and Economic Development

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When we talk about the security of the electricity system, we have some simple questions in mind:

•HowwellwillcentralToronto’selectricitysystem hold up when things go wrong? •Howwellwillthegridgetbyifthereisamajor storm, flooding, fire or cyberattack?

In electricity system planning, these are called major events. Major events are rare events, but they can have a significant impact on customers.

ElectricitysystemoperatorsacrossNorthAmericahave worked together to establish standards for system reliability and security. The central Toronto system is built to this industry standard and performs well within the standards.

Current standards do not require that the system be designed to withstand all events. The current standards reflect the industry’s collective experience regarding the trade-off considerations between very high reliability versus very high system design costs. Occasional disruptions have been accepted to keep rates down.

SecurityFigure 6 shows outages in the regional supply system due to major events. Most are caused by equipment failures or tree contacts in the distribution system. Major event outages are only a small share of all the outages experienced in the central Toronto area but when they happen, they can impact a large number of people, for a prolonged period.

Most recent major events have been caused by adverse conditions and weather that damage equipment in a substation (see Figure 6). For instance, the flooding in July, 2013 created a loss of supply event by causing the shutdown of the Manby transmission station for a period of time. In 2009, a fire control system malfunction flooded the Dufferin substation, causing an extended outage.

Most major events are either directly or indirectly weatherrelated.Notallmajoreventsimpact the electricity system at the regional level. For instance, the main impact of the December 2013 ice storm was on the local distribution lines. The transmission system did not cause the service interruptions in Toronto. Measures to deal with issues related to the ice storm can be found in the Toronto Hydro rate consultation (torontohydro.com/haveyoursay).

FIGURE 6 — MAJOR EVENT IMPACT CHART

*LossofSupplyfromHydroOneduetoadverseweatherTheDecember2013IceStormimpactswereprimarilydistributionrelatedandarebeingaddressedthroughTorontoHydro’srateapplication.

Date Description Category Toronto Hydro

Duration (minutes)Toronto Hydro

customers impact

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Figure 7 shows that while many of these events have a limited impact on customers, some events can create a large outage for a number of people, such as the January 2009 Dufferin Substation flooding and the July 2013 extreme rainfall event.

While major events can cause prolonged outages for a large number of people, they are rare events. Planners can build redundant capacity and flexibility into the system to

improve response times to these events, but the equipment and infrastructure needed for that additional capacity is generally not needed under normal operating conditions. This creates a risk that customers will pay to build elements in the system that provide little benefit during most periods of normal system operations. Money spent preparing for extreme events must be balanced against needed improvements that provide day-to-day system benefits.

FIGURE 7 — FREQUENCY AND DURATION WITH AND WITHOUT MAJOR EVENTS

Frequency Statistics (Interruptions per customer)

Duration Statistics(Hours per customer)

Averagenumberofoutagespercustomerexcludingmajorevents.Averageannualoutagetimepercustomerwithmajorevents.

Averagenumberofoutagespercustomerexcludingmajorevents.Averagenumberofoutagespercustomerwithmajorevents.

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SECURITY DISCUSSION QUESTIONS

For each question, please either check the box for the options that best represents your view or write your response in the space provided.

10. From what you have read here and considering your own experience, how satisfied are you with the way the central Toronto electricity system has performed during major events?

___ Very satisfied ___ Somewhat satisfied ___ Somewhat dissatisfied ___ Very dissatisfied ___ Don’t know

11. To improve the ability of the central Toronto electricity system to respond to major events beyond our current standards will require spending more money. Are you willing to pay more on your electricity bill so the central Toronto electricity system can improve its ability to respond to major events?

___ Yes ___No ___Don’tknow

IF YES: And thinking of a percentage of your bill, how much more would you be willing to pay for the central Toronto electricity system to improve its ability to respond to major events?

______ Per cent

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Options for Meeting Central Toronto DemandsThe key remaining issue is to understand your views about the options available to address the capacity concerns within the study area. In the previous section, we introduced four key considerations for system planning: demand, capacity, reliability and security. In this section, we explore options to deal with these needs.

There are three main solutions to deal with capacity issues:• IncreasedConservationandDemand Management (CDM)•NewDistributedGeneration(DG)•TransmissionorDistributionExpansion

Within these three broad categories, many options are available for meeting central Toronto’s needs in developing the IRRP. The process accounts for the ability of each option to provide timely capacity relief, and contribute to reliability and

security. Each option has different strengths and weaknesses. A balanced plan integrates an appropriate mix of CDM, DG and/or transmission and distribution solutions to help ensure that the needs of electricity consumers are met, by ensuring a timely and adequate level of service at an acceptable environmental and economic cost.

Your feedback on the next few pages will help planners understand your views on what matters to you when they weigh the various options.

FIGURE 8 — SOLUTION FUNNEL

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CDM will continue to play a critical role in meeting the needs of central Toronto. Ontario’s aggressive pursuit of policy and program-driven CDM savings has already made a significant contribution to securing our electricity supply. For instance, between 2011 and 2012, Toronto Hydro reduced electricity demand by 98 MW (across metro Toronto).

Forecasted scenarios show how enhanced conservation can play a significant role in meeting long-term capacity needs without the need for new infrastructure. By consuming less electricity, customers not only save money on their electricity bills, but avoid paying more infrastructure costs in the long-term.

CDM options for consideration in the plan can include:

•Demandresponse(DR),includingspecific, targeted programs to residential, commercial or industrial consumers are activated when required to address local capacity and reliability needs. An example of DR here in Toronto is the peaksaver PLUS® program where small remote control devices allow system managers to cycle your air conditioning or pool pumps for short periods of time during electricity peaks. •Energyefficiencyprograms,suchasretrofits or equipment replacement, especially those targeting large customers such as condominiums and office towers.•Encouragingloadshiftingfrompeaktooff-peak times, either through technologies such as energy storage, or as a result of customer behaviour resulting from Time-of-Use (TOU) pricing.•Expansionofdistrictheatingandcooling systems, which allow the same heating/cooling needs to be met through alternative fuels or more energy efficient means.•UpdatingCodesandStandards,suchasthe Building Code, which have the potential to improve the efficiency and lower the energy needs of buildings, equipment, and appliances.

Until now, CDM measures have been used mostly on a province-wide basis or distribution-system wide basis. The OPA, Toronto Hydro and IESO are currently engaged in studies to identify ways to implement and evaluate CDM on a very local level such as targeted energy efficiency or demand response. This work will allow CDM opportunities to be assessed as options to manage growing needs in local areas such as the downtown or western central Toronto.

The lead time for procuring CDM resources will vary by the type of resource; however, it is estimated that CDM programs could be implemented in the timeframe of 1-2 years.

The following table on the next page shows the strengths and weaknesses of using CDM to manage capacity, reliability and security for the central Toronto electricity system.

Conservation and Demand Management (CDM)

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CONSERVATION AND DEMAND MANAGEMENT DISCUSSION QUESTIONS For each question, please either check the box for the options that best represents your view or write your response in the space provided.

12.Haveyouparticipatedinanyconservationactivities?___Yes___No

If so, please describe some of them? _____________________________________________________________________ _____________________________________________________________________

13. For CDM to provide an alternative to DG or transmission/distribution, it must provide an acceptable level of certainty as compared to DG or transmission. How likely is it that you will participate in Demand Response programs that will allow electricity system managers to cycle equipment you are using? For residences, this would involve automated devices that turn off your pool heater and air conditioner for short periods at time of peak demand? For commercial or industrial users, this would be an agreement to shut down specific equipment on request.

___Verylikely___Somewhatlikely___Notverylikely___Notatalllikely

Conservation and Demand Management Strengths and Weaknesses STRENGTHS

CDMlowerspeakdemandwhichcandeferthe needtobuildnewphysicalinfrastructuresuchasgeneration,transmissionordistributionfacilities.

CDMcanhelpreducetheamountofloadthatneedstoberestoredfollowinganoutage.

SometypesofCDMsuchasDemandResponse canprovidesystemoperatorswithdependable,controllableoptionsatcriticalperiods.

CDMcanprovideplannerswithadditionaltimetomakeinfrastructuredecisions,particularlywhen keyassumptionsarechangingquickly.

ManytypesofCDMrequirenonewphysical infrastructureorlimitedchangestoexisting infrastructure.

CDMhelpscustomersmanagecosts.Energy efficiencyprogramsthatreplaceinefficient equipmentwithmoreefficientequipmentto reducedemandatpeakscanyieldpermanent savingsforcustomersyearround.

CDMprogramsareoftensomeoftheleast expensiveoptionstoaddressalocalcapacityneed.

WEAKNESSES

NotalltypesofCDMdirectlyimpactpeakdemandandtheactualsavingscanvaryfrompredictions.

CDMdoesnotprovideanalternateorback-upsupplylikealineorgeneratorcan.Itdoesnotmanagephysicalrisksto thesystem.

Resultsdependuponcustomeravailabilityandwillingnesstoparticipatewhencalledupon.Performancevariesandmaynot be as reliableasutilitylinesordistributedgeneration.

NewfeederandbreakerpositionsaregenerallyneededtoservenewcustomersinheavilyloadedTorontostations evenwithsignificantCDMefforts.CDMrequiresongoingevaluationmonitoringandverificationtotrackprogress.

Actualtake-upofCDMmayvaryfrompredictionsandmaynotprovidethesametypeofcertaintyasinfrastructuresolutions.Eventually,generation,transmissionordistributionsolutionsmaybeneededanyway.

Theremaybealongpaybackperiodbeforeoperating savingsoffsetthecostofnewequipment.Savingscan erodeovertimeifCDMcontrolsystemsareoverridden.

AslowercostCDMoptionsareexhausted,CDM implementationcostscouldincreaseovertime.

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As noted earlier, the current electricity system serving central Toronto is near capacity at certain key load stations and transmission lines. If at some point central Toronto needs to expand its overall capacity, long-term options could include new transmission facilities such as an additional 230 kV supply path into the area or conversion of exist-ing 115 kV supply to 230 kV. While there may be interest in considering those options at that time, they are not needed now and decisions are not required as part of the IRRP.

Transmission and distribution are also options to help deal with local demand challenges in down-town and in western-central Toronto. Of the two areas, western-central Toronto is most pressing. Four load stations in this area — Horner, Manby, Runnymede and Fairbank — will all reach capacity within five to 10 years. Investment in additional distribution infrastructure to offload fully loaded stations to adjacent stations with available

capacity, or building additional load stations could be required if load continues to grow in the near term.

Technical limitations make it difficult to build new load stations in the Runnymede and Fairbank areas. However, growing need in those areas can be met by shifting some of the feeders serving these areas to other load stations.

It is technically possible to add a new load station either north or south of the Gardiner. Initial studies by Toronto Hydro are underway to identify specific locations for consideration. If a new load station is recommended as the best option, the project will have to follow existing regulatory approval processes including public consultations before construction is permitted. In general, transmission and distribution solutions have long development lead times of about five to seven years.

Transmission and Distribution

Transmission and Distribution Strengths and Weaknesses STRENGTHS

Transmissionlinesandstationsareavery economicalwaytomovelargequantities ofelectricity.

Distributionlinesandstationsareaveryeconomicalwaytomovemediumquantitiesofelectricity.

Transmissionanddistributionsolutionslastlongperiodsoftime(40-60years).

Overheadtransmissionanddistributionlinesaremorecost-effectivethanundergroundlinesand arefastertoinstall.

Undergroundtransmissionanddistributionlines uselesslandspace,arenotvisible,andmoreweatherresistant.

WEAKNESSES

Transmissionbecomeslesseconomicalifnotfullyutilized.Transmissionisusuallyavailableinafewlargesizeincrements.

Distributionbecomeslesseconomicalifnotfullyutilizedorif ithastomovelargequantitiesofelectricity.Distributionisavailableinafewmediumsizeincrements.

Sometransmissionsolutionscantakefivetosevenyearsandsometimeslongertoputinplace.Distributionsolutionstakeonetothreeyearstoputinplace.

Overheadlinesrequiremorelandspaceandarevisible. Theyaresusceptibletodamagefromextremeweather.

Undergroundlineshaveahighercostandtakelonger toinstall.

Somepowerislostwhenmovingelectricityover longdistances.

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TRANSMISSION AND DISTRIBUTIONDISCUSSION QUESTIONS For each question, please either check the box for the options that best represents your view or write your response in the space provided.

14. Sometimes planners have tough choices to make when it comes to balancing the need for capacity, reliability, and security. Below you will see two choices. Please indicate which choice you would make and why?

___ System planners should make full use of existing substations and power lines.

OR

___ System planners should focus on improving the reliability and security of electricity. They should have the flexibility to invest in new substations and power lines to improve future reliability and security, even if there is room to expand on existing infrastructure.

Why do you prefer the one view over the other? ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________

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DG refers to small-scale power generation located close to where the electricity is consumed. DG resources may contribute to meeting peak demand, however, in many cases the output of DG cannot currently be centrally controlled or start up on its own without drawing initial power from the grid. Within central Toronto, there is approximately 31 MW of DG, of which 26 MW can be expected to operate during peak.

The following DG resources are expected to have a significant impact in reducing electricity needs and may help restore supply when needed:

•Distributedrenewableresourcesincludesolar, wind and biogas/biomass. In Toronto, the primary renewable resource is rooftop solar, which can be used to meet supply needs. Rooftop solar can currently be procured through the OPA’s Feed in Tariff (FIT) program.•Combinedheatandpower(CHP)anddistrict energy systems are power systems that consist of both an electricity generator and a provider of heat or steam. Some CHP facilities can provide larger amounts of electricity than most other forms of DG, and may be required to connect directly to the transmission system.

•Buildingemergencygeneratorscanbe retrofitted to contribute to system needs. The highest potential for these resources would be in new or replacement systems. These systems would be assumed to be available on peak, and could also be used for restoration following an outage.

The cost for DG varies greatly depending on type. The lead time for procuring DG resources will vary by the type of resource and programs that exist for procuring the resource, however it is estimated that resources could be procured in the time frame of two to five years.

Distributed Generation (DG)

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Distributed Generation Strengths and Weaknesses

STRENGTHS

Sitinggenerationclosetowhereelectricityisusedcanavoidtheneedforadditionaltransmissionordistributioninfrastructureaswellasavoidtheassociatedlossesofelectricitythatresultwhentransportingelectricityoverlongdistances.

SometypesofDGsuchassomebio-energy,naturalgaspoweredcombinedheatandpower(CHP)orCombinedCycleplantscanprovidereliableenergyatacompetitiveprice.

SometypesofDGwithblackstartcapabilityandcentralcontrolcanbeusedtospeedupsystemrecoveryinablackout.

CHPfacilitiesaregenerallymoreefficientthanother gasresourcesbecausetheyproduceheataswell aselectricity.

Onsite(behindthemeter)generationsuchasroof-topsolar,co-generationorback-upgeneratorscanprovide customerswithelectricitysecurityduringanoutage.

IncreasingtheamountofDGinTorontowillallowthecitytotakemoreresponsibilityformeetingitsownelectricityneeds.

WEAKNESSES

Additionaltransmissionanddistributioninfrastructure isoftenneededtoenablethefurtherconnectionofDG.

SometypesofDGsuchassolarcurrentlyprovidepowerintermittentlyandwithpriceswellabovethecostofothergeneratingresourcesinOntario.

Currently,mostexistingDGdoesnothaveblackstart capabilityorcentralcontrolandcannotbeusedto backuptheelectricitysysteminanemergency.

CHPfacilitiesmaynotbeasflexibleasotheralternativesaselectricityoutputscanbeaffectedbythehostrequire-mentsforhotwaterorsteam.

Thecomplexityandcostofinstallingandoperatingonsitegenerationcanbeabarrierforcustomerparticipation.Sometypesofgeneration,suchasnaturalgasCHPorbuildingemergencygenerators,produceairemissionswhichmaynotbeacceptablewithinanurbanarea.

SometypesofDGgeneratenoiseandpollution.SomepeoplehaveconcernsaboutbeingnearDGandthere canbeissuesregardingcommunityacceptanceoftheseprojects,especiallyinurbanareas.

DISTRIBUTED GENERATION DISCUSSION QUESTIONS

For each of the following types of generation, please tell us what type of generation is appropriate in the central Toronto area all of time, some of the time or none of the time.

15. Solar ___Allthetime ___Someofthetime___Noneofthetime

16. Bioenergy (Biogas/biomass) ___Allthetime ___Someofthetime___Noneofthetime

17. Combined heat and power (CHP) ___Allthetime ___Someofthetime___Noneofthetime

18. Using emergency generators to supply at electricity peaks ___Allthetime ___Someofthetime___Noneofthetime

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As the workbook has shown, CDM, DG and transmission and distribution each have their own strengths and weaknesses. A balanced plan integrates an appropriate mix of CDM, DG and/or transmission and distribution solutions to help ensure that the needs of electricity consumers are met, by ensuring a timely and adequate level of service at an acceptable environmental and economic cost.

CDM reduces and/or defers the need for new infrastructure. It is the only option that can allow customers to reduce their bills. CDM has environmental benefits, which is a clear strength. Often CDM can be less expensive per unit of power than other alternatives, but the cost can vary based on the type of CDM resource. However, when one part of the system fails and the power goes out, you cannot use CDM to fully restore power. CDM can be used to reduce the quantity of power that needs to be restored. As well, while the OPA and Toronto Hydro are working to develop neighbourhood level CDM tools, Ontario has limited experience applying CDM to deal with very local demand issues, so there is some uncertainty involved. Other utilities acrossNorthAmericahavebeensuccessfulatdelivering targeted CDM and Toronto can learn from these examples.

DG allows the central Toronto area to build some local self-sufficiency in energy capacity. Costs, environmental impact and reliability vary depending on the type of generation. Existing DG does not have the scale or the blackstart ability to help restore power in an outage but some larger projects or improved central control may add that capability in the future. Solutions such as CHP, depending on the size, can either reduce demand by generating electricity at a customer’s facility or provide local generation to the grid. As well, some people are concerned about living near some types of DG and community acceptance can be an issue.

Transmission and distribution provide some of the most reliable solutions. They typically provide for a large increase in capability and reliability that can meet changing needs over a longer period of time. They also provide for improved operational flexibility to facilitate the required maintenance in a timely manner and to respond to unforeseen major events. However, transmission and distribution facilities can have a large geographic footprint, and it can be expensive to place these facilities underground. As well, some people are concerned about living near power lines and community acceptance can be an issue.

Comparing Options

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COMPARING OPTIONS FOR GENERATION DISCUSSION QUESTIONS For each of the following types of demand solutions, please tell me if you feel that solution is appropriate in the central Toronto area all of time, some of the time or none of the time.

19. Conservation and Demand Management ___ All the time ___ Some of the time ___ Noneofthetime

20. Distributed Generation ___ All the time ___ Some of the time ___ Noneofthetime

21. Transmission and Distribution ___ All the time ___ Some of the time ___ Noneofthetime

22. Which of these solutions would be your first choice to deal with growing neighbourhood demands? ___ Conservation and Demand Management ___ Distributed Generation ___ Transmission and Distribution

23. And why do you prefer that solution over the remaining options? _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________

24. Which of these solutions would be your second choice to deal with growing neighbourhood demands? ___ Conservation and Demand Management ___ Distributed Generation ___ Transmission and Distribution

25. And why do you prefer that solution over the remaining option? _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________

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COMPARING OPTIONS FOR GENERATION DISCUSSION QUESTIONS What, if any, questions would you want to have answered before deciding whether the following are appropriate for central Toronto?

26. Conservation and Demand Management _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________

27. Distributed Generation _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________

28. Transmission and Distribution _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________

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Blackstart—Theabilitytostartanelectricitygeneratorwithoutpowersupplyfromthegrid.

Capacity—Inthisdocument,thetotalamountofelectricitythatcanbesuppliedtoagivenarea.

CDM—ConservationandDemandManagementareprogramsdesignedtoreduceelectricityconsumptionand/orshiftconsumptionawayfromperiodsof peakdemand.

Circuit—Acontinuoussystemofconductorsprovidingapathforelectricity.

Conductor—Anobjectthatpermitstheflowofelectricity,likeawireorcablethatallowselectricity toflowalongitslength.

Distributed Generation (DG)—Distributedgenerationreferstosmall-scalepowergenerationwhichislocatedclosetowheretheelectricityisconsumed.

Distribution—Atermusedtodescribethatpartofanelectricpowersystemthatdistributestheelectricity toconsumersfromabulkpowerlocationsuchasa substation.Itincludesalllinesandequipmentbeyond thesubstationfence.

Feeder—Adistributioncircuitcarryingpowerfromasubstationtocustomers.Feedersconsistofelectricalcircuitsandotherelectricalequipmentthatissupportedbycivilinfrastructurelikepolesandducts.

IRRP—IntegratedRegionalResourcePlanisalong-termelectricityplanthatintegratesallrelevantresourceoptions,suchasconservationanddemandmanagement,distributedgeneration,large-scalegeneration,transmissionanddistributiontomaintainareliablesupplyofelectricitytoOntariocommunities.

Load stations—Largepowertransformersandprotectionandcontrolequipment(e.g.circuitbreakers)thattransformelectricityfromahighertoalowervoltage.Generally,loadstationsconnecttransmissionsystemstodistributionsystems.(e.g.HornerStation).

Major event—Utilitieshaveadopteddifferentdefinitionsofwhatqualifiesas“major”or“catastrophic”events.Onetraditionalapproachthathasbeenadoptedinanumberofjurisdictionsistodefineanyeventasexceptionalifitleadstointerruptionsforatleast10%ofcustomersonthesystem.

Metro Toronto—ReferstoEastYork,Etobicoke,NorthYork,Scarborough,YorkandtheformerCityofToronto.

Peak Demand—Themaximumpowerrequirementofasystematagiventime,orthemostamountofpowerrequiredtosupplycustomersatatimewhenneed isgreatest.

Reliability—Inthisdocument,reliabilityreferstotheconsistencyoftheelectricitysystemindeliveringelectricitytocustomersinnormalcircumstances.Reliabilityperformanceismeasuredatthedistributionlevelintermsofthenumberofpoweroutagesandthelengthofpoweroutages.

Security—Inthisdocument,securityreferstotheabilityoftheelectricitysystemtoperformwhenexperiencingunusualproblems.

Switch—Adeviceforisolatingapieceofequipmentorasectionoffeedertoallowrepairsorreplacementstobemadeonthemwhileinasafe,de-energizedstate.

Transformer—Adeviceusedtotransformvoltagelevelstofacilitatethetransferofpowerfromthegeneratingplanttothecustomer.

Transmission Line—Highvoltagepowerlinesthatbringpowerfromgeneratingpowerplantstoelectricalsubstationsnearareaswithelectricitydemand.ThelinesthatbringpowertothetwomajortransmissionstationsthatserveTorontooperateat230kV.Thetransmissionlinesthatbringpowerfromthetwotransmission stationstotheloadstationsservingcentralToronto operateat115kV.

Transmission—Normally,thehighestvoltagenetworkofanelectricutilitysystem.Thisistheportionofthesystemthatcarrieshighpoweroverthelongestdistances. Typicallyoperatingatvoltagesinexcessof100kV, andmostusuallyat200kVandabove.

Transmission Station—Largepowertransformers,switchesandotherprotectionandcontrolequipmentusedtoconnecttransmissionsystemsoperatingattwodifferenthighvoltagelevels(e.g.Leaside).

Watt—Acommonmeasureoftheworkelectricitycando.

1,000 watts=1kilowatt(theamountofpowerusedby10100-wattlightbulbs)

1,000,000 watts=1,000kilowatts=1megawatt

Megawatt=1,000kilowattsorenoughtopower10,000100-wattlightbulbs.

Technical Glossary